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Prime Mover News
> Australia to boost fuel security and establish national oil reserve
The Australian Government is boosting the nation’s long-term fuel security by taking advantage of dramatic falls in global oil prices and building on a historic agreement with the US to access their Strategic Petroleum Reserve (SPR). Under the new measures, Australia will establish its first Government-owned oil reserves for domestic fuel security. This will include a deal with the US to store Australian Government owned crude oil in the US SPR. Minister for Energy and Emissions Reduction, Angus Taylor, said the Government would also work with the private sector to consider options for improving domestic fuel security, and would work with refineries on temporary measures to ease the stockpiles of jet fuel by amending fuel standards under the Fuel Quality Standards Act. “The Government is taking action to improve Australia’s fuel security and enhance our ability to withstand global shocks, such as the COVID-19 pandemic, when they reach our shores,” said Taylor. “Australians can be reassured there is plenty of fuel in the country and we are extremely well placed to keep supplies flowing through the COVID-19 pandemic. “The new measures will take advantage of the current low prices for oil and Australia’s privileged position of access to the SPR, which is amongst the world’s most cost-effective longterm oil storage facilities. This work is a down payment on a stronger and more secure fuel supply for Australian households, motorists, industry and the national economy. The announcement according to Taylor delivers immediate and medium-term measures that form a framework for a highly successful and domesticallycentred approach to fuel security, that he said will underpin national economic prosperity for the next decade and beyond. Global oil prices have hit new lows due mainly to a significant drop in demand caused by the COVID-19 pandemic and a lack of cost-effective long-term storage options. Australia has been negotiating access to the SPR since 2018, with Minister Taylor and US Energy Secretary, Dan Brouillette, signing the first arrangement of its kind to facilitate the deal in March of this year. Australia will spend $94 million to buy oil at the current low global prices and has access to hold oil in the US SPR for an initial period of ten years. Taylor said the Government would shortly launch a process to work with the private sector to identify the best options for further strengthening fuel security in Australia. Terms of reference to guide this process will be released in due course and will focus on investment options, supporting the refining sector and assessing the most effective stimulatory options. To help refineries, the Government will work on a temporary change in fuel standards to provide refiners with more flexibility to adapt their operations to manage the changes in demand and oil prices as a result of COVID-19. Any change will be closely managed to ensure refiners have increased flexibility while motorists and the environment are protected. “The temporary change provides Australian refineries with flexibility and can assist them to shore up their viability by helping them resolve some storage and supply issues,” said Taylor.
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Scania intends to reach out to 10,000 of its trucks in Australia.
> Scania launches Prime program for older commercial vehicles
Owners and operators of older Scania trucks have been encouraged to visit one of the commercial vehicle manufacturer’s workshops for a health check. A special lube service will be included as part of the new Scania Prime program announced in which Scania Australia aims to reach out to 10,000 Scania trucks currently in service that are five years old or older and not operating under one of its maintenance contracts. Scania National Aftersales Manager, Patrik Tharna said the company trained technicians had the know-how and tools to ensure the older trucks remained in prime condition using genuine Scania replacement and service parts. “In the current environment where trucking is deemed an essential service and where on-time deliveries are more crucial than ever, operators and drivers cannot afford to suffer unplanned stoppages,” he said. “The Scania Prime concept will be good news for all of our old Scania friends. We’re starting with an offer of a lube service and health check for just $379 inclusive of GST.” The Scania Prime lube offer includes Scania LDF3 synthetic lubricant replacement, new Scania oil filter and a multi-point vehicle health check. In addition, the vehicle operator also receives a 20 per cent discount voucher for fitted genuine parts and labour carried out by Scania’s company-owned workshops around Australia on a future visit. Tharna said with many operators presently worried about their business continuity, it was the perfect time for Scania to offer owners and operators of its older vehicles the opportunity for an affordable lube service and health check. “It’s our way of showing how we continue to care for all Scania family members throughout their long working lives. Scanias enjoy very long working lives as a result of our legendary durability and reliability,” he said. “We want to maintain all Scanias in prime condition. The Scania Prime lube service is just the first of a range of services aimed at older trucks that we plan to roll out in the near future.”
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> Newly appointed Penske boss talks disruption, recovery
Being handed the reigns of the recently re-branded Penske Australia could not have come at more challenging period for Hamish Christie-Johnston but amid the rolling lockdowns the new Managing Director offers clarity in regard to the factors that matter most in the coming weeks. Formerly responsible for Penske Power Systems which handles the Detroit, Allison Transmission and MTU engine and power system brands, Christie-Johnston now finds flagship truck brands MAN, Western Star and Dennis Eagle under his remit. The current period of disruption has accentuated the contrasting fortunes of road transport categories according to Christie-Johnston. There are those in the general freight sector currently inundated with work and others who work in speciality areas that are starved of it. “In this dichotomy there is a real difference in the experience our customers are having right now and we are very conscious of that and trying to work with all of them to help them through this period regardless of whether they’re busier or quieter,” he told Prime Mover. “A lot of our focus for
Hamish Christie-Johnston.
the past few weeks has been about how we service our road transport operators and keep them on the road by providing a very responsive service to them. “Some of them have been very busy so they are not wanting to get a lot of service work done at the moment because they are flat out, but that’s the nature of the beast.” One branch of the Penske group responsive to the shifts in demand is the rental and leasing operation. Market dictates have prompted a temporary rethink for many businesses in handling surges in capacity according to Christie-Johnston. “These last few weeks have been very interesting for us to just observe the utilisation of the rental fleet,” he said. “In Australia we’ve got 300 trucks on rent or lease and the demand has been very strong – much stronger than we would ordinarily expect at this time of year. That is mainly demonstration of the heightened volume happening with groceries. Transport requirements for fuel and aviation fuel have obviously been down and we expect that to stabilise somewhat in the coming months.” Christie-Johnston added that the truck and transport industries will continue to play an important role both now and as the economy recovers. “It’s all about confidence right now. We’ve seen the flattening of the curve in terms of new cases and maybe there’s an expectation emerging now that we will see the state governments start to relax the settings in the coming weeks and we’ll go into a period which is survivable for businesses,” he said. “That will probably go for a period of time and then we will see the economy claw its way back.”
THE ORIGINAL ENGINE OIL
> Qube launches renewables business unit
Transport and logistics company, Qube, has established Qube Renewables with wholly-owned entity, LCR Group, to provide services to companies investing in the construction and maintenance of hybrid renewable technologies. Qube Renewables is reported to combine Qube’s expertise with stevedoring, logistics and renewable solar handling with LCR Group’s specialisation in crane and lift hire, heavy haulage and wind farm component logistics. The LCR Group renewable service, according to Qube, includes liaising with manufacturers, contractual negotiations, crane hire, heavy haulage, erection, post-project agreements, maintenance, and storage. “Qube Renewables, as part of the entire Qube network, has the distinct ability to manage inventory, vessel charter, global freight forwarding and customs clearance,” Qube said in a statement. “Stevedoring, break-bulk and container
Qube Renewables will leverage expertise in stevedoring, logistics and solar handling.
handling, as well as warehousing, distribution, and storage.” Qube Renewables claims to be the only Australia-based logistics provider that can deliver fully integrated hybrid renewable solutions. The Qube Renewables Team, through LCR Group, coordinated and managed the logistics handling of all aspects of AGL’s Coopers Gap Wind Farm project from cargo arrival, port operations, lifting services at port and site, plus delivered 1,230 over-dimensional loads of components via LCR’s heavy haulage services. The Farm is located 250km north-west of Brisbane and at time of completion became Australia’s largest capacity wind farm with the capacity to power up to 264,000 average Australian homes. “To make the transport of each turbine component possible, each component travelled more than 300 kilometres and moving each of these components, primarily throughout the night along some of Queensland’s major roads,” Qube said. “The project is estimated to have an investment in excess of $850 million and boasts 123 turbines, making the Coopers Gap Wind Farm one of the largest wind farms in Australia.”
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V A L V O L I N E . C O M . A U
> PFD Food Services join forces with Woolworths
Unprecedented demand for home delivery services prompted by consumer social distancing has seen PFD Food Services partner with Woolworths. The supermarket retailer has announced the temporary fulfillment of orders for its B2B customers will be assigned to PFD Food Services as part of a strategy to ease stock constraints brought about by the surge in demand for online groceries. “It provides us with access to PFD Foods’ current product range and stock, and their order fulfilment and last mile solutions through our website,” Woolworths said in a statement. Woolworths confirmed that its B2B customers would, under the arrangement, be able to order from the PFD product range, which includes a selected range of bakery, freezer, meat, poultry, seafood and pantry staples. Brad Banducci Woolworths Group CEO said it was important for the company to assist essential services that are still operating, such as day care centres, schools, disability services and nursing homes. “By partnering with PFD we can help these businesses to place bulk orders which meet their requirements through our online service,” he said. “This partnership will also ensure we can continue to focus on increasing capacity within our traditional online business at a time when demand has never been higher for home delivery.” PFD Food Services CEO Kerry Smith said the partnership with Woolworths would provide additional support to their business and ensure the delivery of food and groceries to essential businesses who “continue to operate to support the community during these challenging times.”
> Elite support certification bestowed upon new Daimler Trucks dealers
A pair of Daimler Trucks dealerships in Victoria and South Australia, according to a recent announcement, have achieved Elite Support certification. Fuso Port Melbourne and Daimler Trucks Adelaide satisfied the 129 stringent criteria that enable dealerships to achieve Elite Support certification Daimler Trucks confirmed in a statement. A joint initiative by Daimler Truck and Bus and the Daimler Truck dealer network, Elite Support which offers
a premium in-dealership experience, aims to deliver a new level of service for Mercedes-Benz, Freightliner and Fuso customers across Australia and New Zealand. Its points of difference include maximising vehicle uptime with rapid diagnosis through Express Assessment, consistent communication and robust parts availability. The dealer, as part of the Express Assessment, communicates primary diagnosis, parts availability check and provides an estimate of cost and repair time within two hours of the service write-up. Elite Support was first introduced by Daimler Trucks North America in partnership with its dealership network. The program arrived in Australia back in 2017 and is being implemented across the network as dealerships move through the rigorous certification process. According to Daimler Trucks, many of the Elite-accredited dealers across Australia attribute involvement in the initiative as improving their customer satisfaction levels and helping them run better businesses. “We are thrilled to see Daimler Trucks Adelaide and Fuso Port Melbourne achieve Elite Support Certification and offer their customers an even higher level of service,” said Daniel Whitehead Daimler Truck and Bus Australia Pacific President and CEO. “All dealerships who achieve this important certification are required to make a wide range of investments and improvements across their businesses,” said Whitehead. “It is not easy, but the end result is a better experience for our customers.” Daimler Trucks Adelaide Continuous Improvement Coordinator, Leroy Tricker, says the Elite certification process helped grow his team. “Achieving Elite Support certification has been a hugely satisfying achievement, not only professionally but personally as well,” he said. “As a team we are now looking forward to growing as a continuously improving dealership as part of an evergrowing network.” Fuso Port Melbourne Continuous Improvement Coordinator, James Ferguson, said the dealership is excited to achieve Elite Support certification status. “There is no better satisfaction then being rewarded for hard work. Being recognised nationally as an Elite Support certified dealer allows us to demonstrate a positive point of difference to the customer and to our working team,” he said in a statement. There are now seven Daimler Trucks dealerships with Elite Support certification across Australia and New Zealand.
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Parcel delivery specialist, CouriersPlease, has named its first-ever Chief Commercial Officer as part of a restructure in which the company has merged its sales and marketing teams. Former Victorian State Manager Paul Roper has been appointed to the role with the aim of further aligning the company’s outputs to create more cohesion. CouriersPlease said the newly created role is part of recent structural changes at the business. With 25 years of experience in logistics and transportation, Roper offers expertise in global business development, sales management and designing efficient supply chain models to maximise customer value. In his 19 years at DHL Express, Roper has spent 13 years overseas, with postings in New Zealand, Fiji, Malaysia and Singapore – holding various roles including National Sales Manager (New Zealand & Malaysia), General Manager South Pacific as well as Global Multinational Customer Director South Asia. Roper previously worked as Network Manager of Global Operations at Toll and International General Manager at TNT Express. At present Roper’s team oversees after-hours point-to-point delivery, which is expected to launch before July. CouriersPlease said it will enable consumers to receive twilight or weekend delivery, allowing retailers to keep trading after their stores have closed for the day. Roper said he was thrilled to step into the new role to oversee structural changes and enhancements over the coming months. “I have a keen interest in exploring and investigating digital marketing strategies and understanding how technology can play a role in improving specific commercial areas,” he said. “We will continue to challenge ourselves and the way we can improve and innovate our services and offerings for consumers and businesses. I’m looking forward to delivering many new initiatives in the months ahead.” CouriersPlease CEO Mark McGinley said Roper had a wealth of knowledge from his longstanding career in the industry. “In the short time Paul has been in this role, we have already seen him deliver strong results – signing off major
Paul Roper.
The owner and founder of integrated rail and logistics provider, SCT Logistics has announced, that after two decades he will be stepping down as Chairman. After 50 years working in the transport industry, Peter Smith will step aside and remain on the board as a nonexecutive director. Mark Stone, who up until recently held a position as the CEO of the Victoria Chamber of Commerce, has been announced as the new Chairman. In a statement Stone, who was also recently appointed the Chairman of Goulburn Valley Water, said he was pleased to deepen his association with SCT Logistics. “I have worked with SCT for a number of years through their association with the Victorian Chamber and relish the opportunity to Chair such a dynamic and innovative company,” he said. Smith, whose road fleet business is largely established to complement its freight rail operations, helped pioneer rail privatisation. He has developed over five decades a unique perspective of the industry. “The fundamentals of moving freight from A to B whichever the mode is the same today as they were when I started”, he said. “You just need to look after your customers, hire the best people, be as innovative as you can and do the job smarter than the next bloke. “I am fortunate to be able to work with my boys, with a loyal group of Directors and the incredibly committed Management team we have at SCT today.” He recognised that change within any business is necessary and welcomed Stone to the role. “I am excited to announce Mark Stone AM as our new Chairman. Having dealt with Mark for a number of years I have no doubt that he will represent our company well, re-energise our Corporate board and provide solid management oversight,” he said. SCT Logisitcs acknowledged Stone as highly regarded in business and political circles and formerly welcomed him to the SCT Group.
>SCT Logistics owner steps down
customers this month and the huge success we are having on our returns solution, Boomerang,” he said. “We’re excited about the future of CP and the strong team we have to execute this.” As CouriersPlease Chief Commercial Officer, Roper, according to a company statement, will be responsible for supporting revenue generation across all channels within the company as well as supporting key customer acquisition nationally. The merging of the sales and marketing team as part of the restructure has been initiated to effect a closer relationship with joint accountability for revenue generation.
> Heavy Vehicle Road User Charge frozen by Government
Australian truck owners and operators will save hundreds of dollars a year according to the Federal Government after it announced that it would freeze the Heavy Vehicle Road User Charge at current levels. The Government, it said, was taking decisive action to support freight operators working hard to keep shelves stocked and essential goods moving during the COVID-19 pandemic. The Road User Charge, according to Michael McCormack Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development, which is set to recover the heavy vehicle share of road maintenance and improvements, will remain at 25.8 cents per litre for diesel in 2020-21 as opposed to the proposed scheduled increase of 2.5 per cent. McCormack said the Federal Government would continue to help industry through these challenging times. “Our response demonstrates our commitment to supporting the heavy vehicle industry as we put Australia in the best position possible to deal with the COVID-19 outbreak,” he said. “Australia’s heavy vehicle industry is crucial to sustaining our economy and distributing critical goods during the COVID-19 pandemic.” He said the freeze will ease some of the current pressures on the industry. “It is so important we help maintain the supply and flow of medicines and medical equipment and food and essential items to our supermarket shelves at this time. Road freight is absolutely critical to this,” he said. Assistant Minister for Road Safety and Freight Transport Scott Buchholz said
Scott Buchholz.
all levels of Government are continuing to work together, along with industry and regulators such as the National Heavy Vehicle Regulator, to minimise any unnecessary barriers to freight movement. “Following the closure of some State and Territory borders, the Federal Government has been coordinating national action to make sure essential workers who aren’t travelling in trains or trucks such as safety inspectors, mechanics and maintenance crew, are able to get to where they need to be with limited disruptions,” he said. “The Australian Health Protection Principal Committee and the National Cabinet have also approved an exemption for roadhouses, dedicated truck stop facilities and truck driver lounges to remain open so Australia’s heavy vehicle drivers have access to showers, restrooms and facilities to undertake their mandated fatigue management breaks. This is critical to keeping freight moving during the COVID-19 pandemic,” said Buchholz. “I have been working very closely with industry throughout this pandemic, hearing from operators large and small,” he said. In a statement Bucholz said the Government acknowledged the transport sector has had two speeds during this pandemic. “There are those that have been working relentlessly with greater amounts of freight to move, while many other operators across the supply chain have experienced the opposite and suffered as a result of COVID-19,” he said. “These measures go some way in demonstrating all levels of Government recognise the pressure on the transport industry at this time. “The Government has the back of these hard working Australian men and women of the transport industry who continue to work so hard to ensure critical supplies reach Australians when and where they need them.”
Mystgold Freightliner Coronado.
> Mystgold hot-seats Freightliners to meet delivery demands
Townsville-based freight specialist, Mystgold, has, as it rises to the current challenges facing supermarket delivery services, added additional staff and taken to running its fleet of trucks day and night. With a dozen Freightliner Coronado 114s transporting milk and bread and goods on a Woolworths contract to remote places like Mt Isa and Mossman and other wide ranging destinations across North Queensland, Mystgold, according to owner Chris McMurray, is seeing unprecedented demand as stock shipments have surged during the unique market induced by the current coronavirus pandemic. “The trucks just don’t stop,” McMurray said. “We have been doing a lot of hotseating to meet the demand. The trucks are working during the day with one driver and then all night with another.” After the COVID-19 shutdown hurt many parts of the local economy including a noticeable decline in local courier services, McMurray has been able to offer some of these drivers work in his fleet of 38 commercial vehicles. “I’ve known guys who have done courier work around town for a very long time and all of a sudden, they had no work at all with all of the shutdowns. They have been hit hard,” he said. “It has been great to be able to give work to some of those guys.” The Coronados, despite the extra work, have not missed a beat according to McMurray. “I haven’t been able to fault them at all, they have been good for my business,” he said. The arrival of the Freightliner Cascadia has been cause for excitement among the Mystgold team which will take delivery of a demo vehicle in the coming weeks. “We can’t wait to get into that truck to try it for ourselves,” said McMurray. “The drivers are pretty excited about that.” McMurray said his team of drivers, many of whom have been long time servants at the company, have noticed greater consideration from the general public for trucks on the road. He speculates that temporary empty shelves at supermarkets might have helped people realise the vital role trucks play in the supply chain. “Our drivers have noticed a big difference out on the road. Car drivers are being much more courteous, moving over to let trucks through, or not sitting in front holding them up,” he said. “It seems that they are aware that our drivers are out there driving all night to make sure they have milk and bread for breakfast when they wake up. The public really seem to be noticing trucks and the role that they play.” The company, which employees 72 staff, was named the 2018 Woolworths Carrier of the Year, and is now operating day and night to keep supermarket shelves full. Despite anticipating an eventual decline in consumer demand, McMurray said it had yet to happen over the last six weeks and there was little chance things would change anytime soon. “The demand has been unbelievable. I have never seen anything like it,” he said. “We are still seeing big numbers even now. It has been a huge challenge but we have gotten it all done.”
> Truck giants join forces on hydrogen tech
Large scale production and commercialisation of hydrogen fuel cells has been given a boost by a joint venture between two of the world’s biggest commercial vehicle manufacturers. Daimler Truck AG and Volvo Group have announced the signing of a preliminary non-binding agreement to establish the new joint venture. The intention is to develop, produce and commercialise fuel cell systems for heavy-duty vehicle applications and other use cases according to a media release that confirmed Daimler will consolidate all its current fuel cell activities in the joint venture. Volvo Group will acquire 50 per cent in the joint venture for the sum estimated to be worth $1.35 billion on a cash and debt free basis. As energy is emitted from batteries or by converting hydrogen on board into electricity, CO 2-neutral transport can be accomplished through electric drive trains said Chairman of the Board of Management Daimler Truck AG Martin Daum. “For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades,” he said. “This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads.” Using hydrogen as a carrier of green electricity to power electric trucks in long haul operations is one important part of the puzzle according to Volvo Group President and CEO Martin Lundstedt. “Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole,” he said. “By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed.” The joint venture will operate as an independent and autonomous entity, with Daimler Truck AG and the Volvo Group continuing to be competitors in all other areas of business.
> Hino and Toyota collaborate on zero emissions truck
Hino Motors, Ltd. (Hino) and Toyota Motor Corporation (Toyota) have agreed to jointly develop a heavy-duty fuel cell truck, and to proceed with initiatives toward its practical use through verification tests and other means. Through their respective Environmental Challenges, Hino and Toyota have both indicated their intentions to take proactive measures towards resolving global environmental issues. The two companies have set ambitious goals to reduce CO2 emissions by 2050 and are both developing electric vehicle technologies for widespread use in society. In order to achieve further reductions in CO2 emissions, major improvements will be required in the environmental performance of heavyduty trucks, which account for about 60 per cent of the total CO2 emissions from commercial vehicles in Japan. For the electrification of commercial vehicles, the optimum powertrain, Hino claims, must be adopted to ensure both outstanding environmental performance and just-right practicality as a business vehicle in terms of cruising range, load capacity, and other aspects depending on the usage. The heavy-duty fuel cell truck in this joint development project is based on Hino Profia (known in Australia as the Hino 700 Series). The chassis is specially designed with the optimum packaging for a fuel cell vehicle, and steps are being taken through comprehensive weight reduction to ensure a sufficient load capacity. Two Toyota fuel cell stacks specified for the powertrain have been newly developed for Toyota’s next Mirai hydrogen fuel cell electric vehicle and includes vehicle It is anticipated that costs for both companies will be decreased by joining forces while accelerating the market introduction of fuel cell systems in products used for heavy-duty transport and demanding long haul applications. In the context of the current economic downturn cooperation has become even more necessary between the companies in order to meet a common goal which follows European Green Deal objectives to turn a 27 country bloc to a low carbon economy, at a cost estimated to be more than $1.7 trillion within the next decade. To enable the joint venture, Daimler Trucks is bringing together all group-wide fuel cell activities in a new Daimler Truck fuel cell unit.
Kirchheim-Nabern assembly line.
driving control that applies to heavy-duty hybrid vehicle technologies, developed by Hino. Toyota and Hino have both positioned hydrogen as an important energy source for the future and have worked together on developing technologies and spreading and innovating fuel cell vehicles for over fifteen years since their joint demonstration trials of the fuel cell bus in 2003. “This is an exciting project for Hino at a global level,” said Hino Australia Product Strategy Manager, Daniel Petrovski. “Here in Australia, Hino is committed to the Hino Environmental Challenge 2050 and has proven to be a leader in the reduction of emissions of commercial vehicles. “We were the first truck manufacturer in Australia to introduce a hybrid commercial vehicle, the Hino 300 Series Hybrid, in 2007,” he said.
